RCATNew quarter, who dis?
Red Cat Holdings came out swinging with its Q1 2026 results, and the headline number is the kind that makes you do a double take: revenue surged 849% from a year ago to $15.5 million. That’s not a little improvement. That’s the corporate equivalent of going from a tricycle to a sports car in one quarter.
The margin math got a lot prettier
The company also said gross margins improved by 64.8 percentage points year over year, and were up 199% sequentially from Q4 2025. Translation: Red Cat isn’t just selling more — it’s selling more without torching as much cash in the process. That’s the difference between a cool growth story and a business investors can actually start underwriting with a straight face.
Why you should care
Red Cat sits in the defense and national security drone lane, which means investors are watching for two things: demand and execution. Big revenue growth is nice, but margin expansion is what tells you this might be more than a flashy order-book moment.
If the company can keep stacking growth while making the economics less messy, the stock has a shot at staying in the conversation. If not, today’s print becomes another one of those "great slide deck, now prove it" moments.
Big picture: Red Cat just gave bulls a much louder reason to stay interested — but the next few quarters will tell you whether this is a breakout or just a very expensive victory lap.